Wind power producers may get 10-yr tax holiday

Wind power producers may get 10-yr tax holiday

After solar energy, the government is planning major financial initiatives for the wind energy sector in order to promote renewable energy.

A 10-year tax holiday for wind power producers, concessions in customs duty and exemption in excise duty for procurement of technology and equipment may be on the cards in the Budget for 2015-16 next month. Besides, Finance Minister Arun Jaitley is also expected to enhance allocation substantially for clean energy to promote renewable energy initiatives and fund research.

The government plans to have 60,000 megawatt (mW) wind power capacity in the country by 2022, which envisages an investment of around Rs 10 lakh crore in the renewable energy sector.

The government has also sought public and private help to raise fund for clean energy.

Sources said that the government is expecting major commitment from the global investors at a summit to be organised next month in India.

The renewed emphasis on renewable energy comes in the wake of the governments efforts to reduce the energy import bill of the country from $150 billion currently, and is expected to double by 2030.

Focus on renewable energy generation also stems from the fact that the BJP had made energy security a main plank in its national election campaign last year. The government is also planning to give concessions on bundling where the solar or wind power produced is bundled with conventional energy, sources said, adding, this will promote production of cost-effective non-conventional energy and enhance its acceptability among people.

Indias potential for harnessing wind energy ranks it fifth in the world.But popularising it in a hugely diverse county is the challenge. Once the wind power energy production makes headway, it is also expected to generate employment opportunities in wind-heavy zones like Tamil Nadu, Andhra Pradesh, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Rajasthan and West Bengal, according to sources.

At an event recently, Prime Minister Narendra Modi had said that steps were being taken to provide power for all using renewable energy. He had also emphasised that he will push faster implementation of projects.